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Recurring Deposit Calculator

Calculate RD maturity with monthly deposits

Private
Instant
Estimate
Maturity amount₹3,54,954
Total interest₹54,954

Inputs

₹5,000
in rupees

6.5%
in percent

Large banks pay about 6–6.5% for 1–5 years (Sep 2026). Enter your bank's rate.

60 months
in months

Results

Maturity amount
₹3,54,954
After 60 monthly instalments at 6.5% p.a.
Maturity₹3.55 L
Share of the maturity amount
  • Deposited85%
  • Interest15%
Total deposited
₹3,00,000
60 months of deposits, paid at the start of each month
Total interest
₹54,954
Compounded quarterly at 6.5% p.a. on each instalment

Balance over time

What the RD is worth after each month, against what you have deposited.

₹3,00,000 deposited over 60 months grows to ₹3,54,954.
₹3,00,000 deposited over 60 months grows to ₹3,54,954.

Year-wise breakdown

The RD's value at the end of each year, and at maturity in a part year.

Year-wise breakdown
YearDepositedInterestValue
Year 1₹60,000₹2,143₹62,143
Year 2₹1,20,000₹8,425₹1,28,425
Year 3₹1,80,000₹19,122₹1,99,122
Year 4₹2,40,000₹34,527₹2,74,527
Year 5₹3,00,000₹54,954₹3,54,954

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Assumptions and methodology

Transparent calculation notes for RD Calculator.

Methodology notes

Formula used

Recurring deposit compounding
Maturity value = sum of compounded monthly deposits

Each monthly deposit is compounded for its remaining tenure and added to the final maturity value.

Methodology

  • Treat each monthly deposit as a separate contribution.
  • Compound every contribution until maturity.
  • Add all compounded deposits to estimate maturity value.

Core assumptions

  • Deposits are made monthly without missed installments.
  • The interest rate remains fixed.
  • Interest is compounded quarterly on each monthly deposit, as Indian banks and India Post do.

Not included

  • Tax, TDS, premature closure penalty, and missed-installment charges are excluded.
  • Actual bank calculations may vary by product rules.

About RD Calculator

Guide

1What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a savings instrument offered by banks and post offices in India that allows you to invest a fixed amount every month for a predetermined tenure. It combines the discipline of regular saving with the safety and guaranteed returns of a fixed deposit.

RDs are ideal for individuals who want to save a fixed sum monthly and earn interest on their accumulated savings, without exposure to market risk.

2RD Interest Calculation

RD interest is compounded quarterly on each monthly deposit. The maturity value is:

M = R × [(1 + i)^n − 1] / [1 − (1 + i)^(−1/3)]

  • R = monthly deposit
  • i = quarterly rate = annual rate ÷ 400 (e.g. 7% → 0.0175)
  • n = number of quarters = months ÷ 3

This is the same as compounding each monthly deposit quarterly for the months it stays invested and adding them up.

3How to Use This RD Calculator

  • Step 1: Enter your monthly deposit amount (e.g., ₹5,000)
  • Step 2: Input the annual interest rate (e.g., 7%)
  • Step 3: Choose the RD tenure (typically 6 months to 10 years)
  • Step 4: View the maturity amount and total interest earned

4RD vs SIP: Key Differences

  • Returns: RD offers fixed guaranteed returns; SIP returns are market-linked and variable
  • Risk: RD has near-zero risk; SIP carries market risk
  • Potential: SIP can generate significantly higher returns over long periods
  • Flexibility: Missing an RD installment attracts penalties; SIP can be paused freely
  • Tax: RD interest is fully taxable; SIP equity gains have more favorable tax treatment

Frequently Asked Questions

FAQ
What happens if I miss an RD installment?
India Post discontinues an RD after more than four missed instalments; you can revive it within two months of the fourth default by paying the missed deposits with a revival fee of ₹1 per ₹100 per month. Up to four missed instalments can instead be paid later by extending maturity by the same number of months. Banks set their own limits, so check your bank's terms.
Can I withdraw my RD before maturity?
Yes, premature withdrawal is allowed but may attract a penalty of 0.5-1% reduction on the applicable interest rate, similar to premature FD withdrawal.
Is RD interest taxable?
Yes. RD interest is taxable at your slab rate in both tax regimes. Banks deduct 10% TDS when your total FD and RD interest from that bank in a tax year exceeds ₹50,000 (₹1,00,000 for resident senior citizens). If your tax for the year is nil, submit Form 121 (earlier Form 15G/15H) to avoid TDS.
What is the minimum amount for an RD?
India Post RDs start at ₹100 a month, in multiples of ₹10. Banks set their own minimums, often ₹500 or ₹1,000.
Is post office RD better than bank RD?
Post office RDs are backed by the Government of India and often offer competitive interest rates. Bank RDs may offer slightly higher rates and better digital access. Both are safe choices for conservative investors.